Waters Corporation (WAT)

Net profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	642,234	653,091	674,537	688,847	707,755	696,932	702,119	704,547	692,843	694,915	660,499	616,136	521,571	503,929	515,293	536,774	592,198	576,681	579,562	590,829
Revenue (ttm)	US$ in thousands	2,857,555	2,913,395	2,928,280	2,913,876	2,923,159	2,904,113	2,856,130	2,822,850	2,740,936	2,690,971	2,625,688	2,463,034	2,316,295	2,242,766	2,225,719	2,306,467	2,357,906	2,359,178	2,359,942	2,356,755
Net profit margin		22.47%	22.42%	23.04%	23.64%	24.21%	24.00%	24.58%	24.96%	25.28%	25.82%	25.16%	25.02%	22.52%	22.47%	23.15%	23.27%	25.12%	24.44%	24.56%	25.07%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $642,234K ÷ $2,857,555K
= 22.47%

To analyze Waters Corp.'s net profit margin based on the provided data, we observe a trend of declining net profit margin over the past eight quarters. The net profit margin has decreased from 24.57% in Q1 2022 to 21.72% in Q4 2023. This downward trend indicates a potential challenge in maintaining profitability relative to revenue generated.

While the net profit margin has fluctuated slightly quarter to quarter, it generally remains around the low 20% range. This suggests that Waters Corp. may be facing challenges in controlling costs and expenses relative to their revenue generation.

Further analysis of the factors impacting the company's profitability, such as changes in pricing strategies, operating efficiencies, or competitive pressures, may provide insights into the reasons behind the declining net profit margin. Monitoring and addressing these factors could be essential for Waters Corp. to sustain profitability and drive future growth.